A$ Down Slightly Ahead Of RBA Announcement

AUDUSD is down 0.1% to 0.6777 ahead of the RBA meeting, while the USD index is up 0.1%. Consensus expects rates to be unchanged at 3.6% but predictions are far from unanimous with many expecting a further 25bp hike.

• Aussie is mixed against the major crosses with AUDNZD down 0.2% at 1.0758. While the RBA is expected to pause, the RBNZ is likely to hike a further 25bp widening the rate differential to 140bp. AUDJPY is up 0.2% to 90.03. Aussie is flat versus the euro and pound at 0.6222 and 0.5464 respectively.
• Equity markets are mixed across the APAC region with the ASX close to flat, the Hang Seng down 0.9% but the Nikkei up 0.2%. S&P e-minis are down 0.1%. Oil prices have continued to rally with WTI up a further 0.5% to $80.80/bbl, close to the intraday high. Copper is down 0.1% while iron ore is down 1.8% to around $118/t.
• The focus for Tuesday remains the RBA meeting (see MNI RBA Preview - April 2023). Later the Fed’s Cook, Collins and Mester speak. There is little on the data calendar with February US JOLTS job openings the main release.